Consequences of a PIA

There are serious consequences involved in a personal insolvency agreement (PIA). Make sure you understand these before making a proposal.

On this page

1 min read

If you enter into a personal insolvency agreement:

  • You are committing an act of bankruptcy - a creditor can apply to the court to make you bankrupt if the PIA fails.
  • Your details will appear on the National Personal Insolvency Index (NPII) permanently.
  • Your details will appear on your credit file for up to 5 years, or longer in some cases.
  • You’re not able to deal with your property (e.g. house or car) without the consent of your controlling trustee.
    • You may however be able to run your business if the terms of the agreement allow.
  • You’re not able to manage a corporation until the terms of the agreement have been finalised.
  • You are obligated to assist your trustee by providing information and documentation if requested.

For a comparison of the consequences of personal insolvency agreements, bankruptcy and debt agreements, see: Compare the formal options table.